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KPMG Survey Highlights Outsourcing Opportunity for Lviv

KPMG specialists have indicated that the rush for new outsourcing centers is the result of two major factors: the credit crisis seems to have encouraged companies to consider outsourcing, while the traditional locations have approached their saturation point. This means that there is a sizable opportunity for these new locations to absorb a large proportion of the new outsourcing work created by the credit crunch.

As corporations are looking to find new locations which can reduce their cost base, Lviv has an opportunity to come as a city which has its own niche specialism and eclectic mix of unique characteristics.

Why has Lviv been identified as a new outsourcing hot spot? The answer is elegant and quite simple. Lviv has a large pool of highly educated people, houses several leading educational institutions and a high literacy rate of about 99.6%. English competency for niche specializations is high, while Lviv has a lower cost of living than elsewhere in Ukraine, and the salaries in Lviv are significantly lower than in Western Europe. Lviv is also well-connected to the rest of the world logistically and only a two-hour flight from most European capitals. No less important is government support, and in this regard the Lviv City Administration has proved supportive of outsourcing initiatives.

The outsourcing market in Lviv has been showing steady growth since 2002. This means that partners in Ukraine are maturing and delivering good products and more and more clients are becoming inclined on taking a chance on Lviv.

The full list of highlighted destinations according to KPMG report includes: